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The Australian Financial Review wrote a very interesting article in March (18 March 2025 "Gold price fever pitch as fundies spruik 100pc gains") that Australian fund managers are racing to launch gold-focused investment funds, seizing on record-breaking prices that have pushed bullion past $US3000 an ounce for the first time. Gold has climbed more than 14% in 2025 alone, and 40% over the past year, with major banks repeatedly raising their forecasts. While gold stocks had lagged due to cost pressures, they are now gaining ground. The NYSE Arca Gold Miners Index is up 30.8% this year, with the ASX equivalent rising 29%. Collins St Asset Management is reopening its Special Situations Fund to new investors after a near 80% surge in 12 months, claiming select small- to mid-cap stocks could double in value if gold remains strong. L1 Capital has also launched a gold fund, targeting mid-cap companies in Australia and North America, using a long/short strategy to balance gains with downside protection. Notable holdings include Westgold Resources and Eldorado Gold. Meanwhile, the Victor Smorgon Group has debuted a second gold fund, eyeing returns over 50% in 18 months. Portfolio manager Cameron Judd believes the strategy’s concentrated picks of global miners offer “exceptional upside with low downside risk.” He also warned that Trump-era tariffs could spur stagflation, pushing gold to $US3600 an ounce. Macquarie and Bank of America share similar views, lifting long-term price targets to $US3500. Investor sentiment has followed suit, with net buying of gold ETFs this year reversing a four-year trend. February saw the largest monthly inflows into North American ETFs since July 2020, partly driven by a price arbitrage between New York and London markets. To meet growing local demand, Global X is launching a new ETF tracking gold in Australian dollars, set to begin trading by the end of March. 
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A 2024 study by the World Gold Council found that 38% of German investors have bought or held gold—making it the third most popular investment after savings accounts and stocks. Their reasons echo those of central banks and institutional investors: gold protects against inflation, is easy to trade, offers better long-term returns than cash, and helps diversify portfolios. As of April 21, 2025, gold prices have soared past US $3,400 per ounce—a record high. The 12% gain in the past month and 45% jump over the past year is driven by safe-haven demand amid global trade tensions and a weakening U.S. dollar. Germany’s deep-rooted relationship with gold remains strong. The Deutsche Bundesbank holds the world’s second-largest gold reserves, behind only the U.S. Federal Reserve. These reserves reflect both strategic foresight and a cultural memory shaped by hyperinflation and economic turmoil, reinforcing gold’s appeal as a stable, tangible asset. Germany's affinity for gold—rooted in history, economics, and psychology—continues to shape both private and institutional investment strategies as the global outlook remains uncertain. BNP Paribas recently highlighted five reasons for continued bullishness on gold and these are some of the reasons also cited by German gold investors.
German and European investors continue to be very strong buyers of global gold exploration and mining companies with a dual listing on Frankfurt Stock Exchange. Some of these include:   On 25 March 2025, the European Commission unveiled a list of 47 Strategic Projects under the Critical Raw Materials Act (CRMA). These initiatives aim to fortify the EU’s critical raw materials value chains and enhance the bloc’s strategic autonomy in securing essential resources.
Understanding the CRMA and the Role of Strategic Projects The Critical Raw Materials Act, which entered into force in May 2024, is a cornerstone of the EU’s strategy to address growing concerns around the supply of key raw materials essential for technologies in renewable energy, defense, batteries, and aerospace. Materials such as lithium, cobalt, and nickel are vital, but the EU currently relies heavily on third countries for their supply, processing, and recycling. To address these vulnerabilities, the CRMA establishes clear benchmarks to be met by 2030:
Selection and Benefits of Strategic Projects Applications for Strategic Project status opened in 2024. Projects were evaluated by independent experts based on technical feasibility, financial and sustainability metrics, alignment with CRMA criteria, and classification under the United Nations Framework Classification for Resources. Following this initial assessment, the European Commission created a shortlist, which was then reviewed by the Critical Raw Materials Board—composed of representatives from EU Member States and the European Parliament (as an observer). After consultation, the final list of 47 Strategic Projects was formally adopted. These projects benefit from two significant advantages:
A Snapshot of the 47 Strategic Projects The designated Strategic Projects span 13 EU Member States and reflect diverse stages of the raw materials value chain:
The designation of these 47 projects marks a significant milestone in the EU's efforts to secure the raw materials that underpin its green and digital transitions. As implementation begins, close attention will be paid to how effectively these projects are supported—and how they help reshape the EU's strategic position in global supply chains. Australian Projects The following projects have been awarded Strategic Projects status where there is an ASX listed company involved:
Germany’s outgoing parliament on Tuesday approved a sweeping increase in government borrowing, passing legislation that includes significant changes to the country’s strict debt rules. The move is aimed at bolstering defense capabilities and reviving economic growth in Europe’s largest economy. The legislation, proposed by Chancellor-in-waiting Friedrich Merz’s conservatives and the center-left Social Democrats (SPD), outlines the creation of a €500 billion ($546 billion) fund dedicated to infrastructure development and economic recovery. It also includes changes to borrowing rules to support defense spending and aid for Ukraine. To secure the necessary two-thirds majority, the coalition partners integrated last-minute demands from the Greens party, a key player in ongoing government formation talks following last month’s election. The legislation will now proceed to the Bundesrat, Germany’s upper house representing the country’s 16 states, which is expected to vote on Friday. Senior officials from the conservatives and the SPD have expressed confidence that the bill will pass. According to Merz, leader of the center-right Christian Democratic Union (CDU), the exceptional borrowing is justified under the unique circumstances created by what he called “Vladimir Putin’s war of aggression against Europe.” Under the proposed package, defense spending exceeding one percent of GDP will be exempted from the constitutional debt brake, a move aimed at strengthening Germany’s military capabilities. Additionally, aid for Ukraine will fall under this exemption, potentially unlocking billions of euros for the embattled country. “The decision we are taking today can therefore be nothing less than the first major step towards a new European defense community,” Merz stated. He emphasized the importance of involving non-EU countries such as the UK and Norway, while also advocating for European manufacturers to receive reliable and predictable defense orders. Beyond defense, the package dedicates €500 billion to boosting Germany’s economy, with 20% of that amount committed to combating climate change — a critical demand of the Greens party. Furthermore, borrowing restrictions for Germany’s 16 states are to be relaxed, enabling billions more to be directed toward local infrastructure projects. The adoption of this ambitious package marks a significant victory for the incoming coalition and is expected to provide financial stability over the coming years. Its success comes after the collapse of the previous SPD-led coalition government in November, partly due to fiscal challenges. The Bundesrat’s vote on Friday will be the final hurdle for the transformative package, which promises to reshape Germany’s economic and defense landscape for years to come. In 2024 global biotech companies in Europe saw generally strong demand from European retail, sophisticated and institutional investors. Interest was especially strong in those companies with a dual-listing on Frankfurt Stock Exchange. Choosing the right IR partner in Europe is critical for companies looking to engage with, and nurture trust from, European investors. Biotech investor relations (IR) is fundamentally different from IR in other industries. Unlike traditional companies valued on near-term profitability, biotech firms operate in a high-risk, long-term development cycle where value is tied to future potential rather than immediate revenue. Successfully engaging with the investment community requires a strategic, specialized approach. We are seeing an increasing appetite from EU investors for quality global biotech and life sciences companies with a dual-listing on Frankfurt Stock Exchange. Technology: Translating Innovation into Investor Confidence A biotech company's technology is its most valuable asset, but early-stage biotech innovations are often unproven. A common pitfall is being too immersed in the science, making it difficult to clearly articulate your value proposition to investors. The ability to explain your technology’s uniqueness, origins, and competitive advantage in a compelling yet accessible way is essential. While many biotech investors have scientific or medical backgrounds, your messaging must remain concise, strategic, and investment-focused. We work with specialist biotech experts in Germany that create detailed articles in easy-to-understand language for German equity media publications. Managing Risk: A Clear Roadmap Through Development and Regulation Biotech investments come with inherent risks, from drug development and regulatory hurdles to commercial viability. Investors need to understand how your company plans to mitigate these risks. A strong IR strategy requires a transparent and well-structured narrative, outlining your pathway through clinical development, regulatory approval, and market adoption. Clarity on these key milestones builds investor confidence and distinguishes your company from competitors. Demonstrating Opportunity: Credibility and Market PotentialThe life sciences industry presents immense growth potential, but credibility is key when defining your market opportunity. Investors expect biotech companies to provide realistic, data-backed projections of potential market size, adoption rates, and competitive positioning. While bold projections can be persuasive, they must be defensible—your ability to justify revenue potential and peak sales estimates will directly impact how investors model your future value. Meeting HNW/FO investors face-to-face in Europe is important. Many global companies present at EU events such as BioEurope and this also open up opportunities for an EU investor roadshow in cities such as Frankfurt, Munich or Zurich. Financial Strategy: Planning for Capital Market Expectations Most biotech companies rely on external funding throughout their lifecycle, requiring a proactive approach to capital markets. Investors anticipate strategic fundraising aligned with key milestones, such as positive Phase 2 or Phase 3 clinical data. A well-structured IR strategy ensures your company is positioned for sustainable growth while meeting investor expectations for financial planning and execution. When meeting DACH region HNW/FO investors it is important to be able to clearly articulate a company's capital requirements, strategy, cash flow management and vision. Why the Right Investor Relations Partner Matters Given the complexity and unique challenges of biotech IR, choosing the right investor relations firm is crucial. A strong European IR partner will not only help craft a compelling investment thesis for EU investors but also navigate market expectations, engage the right investors, and optimise your communications strategy. With the right European IR strategy and support, your life sciences company can maximize European investor confidence, secure capital efficiently, and develop long-holding and engaged investors in Europe. In Europe we collaborate with a company's home IR firm to ensure a clear and consistent message across global markets. We have deep relationships with DACH region financial journalists and article writers to nurture engagement and interest with biotech, life sciences and impact investors in Europe. There are 12 million equity and ETF investors in Germany alone - this is an important market for biotech, medtech and life sciences companies to engage with.  h the increasing complexity of European capital markets and the digital-first mindset of today’s investors, it is vital to find a partner who understands how to excel in this evolving landscape. In Germany - where we work with Australian, North American and UK companies to engage with European retail and sophisticated investor - the competition for investor dollars is the strongest it has ever been. Excellence, connections, and on-ground expertise are essential. We collaborate with Tier-1 German and European Investor Relations professionals and Roadshow providers and content creators to help ensure your European IR strategy is a success. The New Era of Investor Relations The digital revolution has reshaped how companies and investors interact. Companies need to engage in real-time dialogue through webcasts, live chats, and digital platforms. The competition for investor attention is fierce, and a successful IR strategy must be holistic in nature. An effective IR program is not just about quarterly updates – it involves nurturing and cultivating long-term relationships that withstand the market’s difficulties. Trust and credibility derive through consistent, transparent communication. Investors should know a company’s narrative and strategy, believe in the board and management, and want to stay for the journey. Building a successful investor relations strategy Companies should look to an investor relations firm that brings expertise, creativity, and a deep understanding of how to connect with today’s investor.
The Right Partner Can Be a Game-Changer Here at Austlinx, we assist with our European partners to create a program to highlight a company’s strengths, establish trust, and engage with European retail, sophisticated and institutional investors.  We have compiled a list of some the most traded ASX companies in with a dual listing on Frankfurt and German exchanges for August 2024. This list only includes buying on Frankfurt, Tradegate, Berlin, Stuttgart – and the main German trading exchanges. The table excludes EU Institutional buying as this will generally occur on home exchange where liquidity is better.  The standout performer is Droneshield (ASX: DRO) whose narrative has resonated very strongly with German and European investors.
Specialising in counterdrone technologies, Droneshield serves military, government, law enforcement, and critical infrastructure sectors. The company’s solutions include radio frequency sensing, AI, machine learning, and electronic warfare. Its new radio frequency artificial intelligence (RFAI) technology offers improved drone detection by reducing false alarms and accurately tracking drones at a lower cost. Unlike current systems, DroneShield’s RFAI can detect drones at greater distances, even over water, enhancing performance while lowering costs. DroneShield’s success has led to its technologies being included in Australia’s $20 million aid package to Ukraine, where they are used on the frontlines. The company also secured a $4.7 million order from a Swiss client for VIP protection and expanded its RFAI capabilities. Drone and defence tech continues to receive considerable newsflow here in Europe and we are also seeing other companies in this space engage strongly with EU investors. Rare Earth stocks such as Lynas Rare Earths (ASX: LYC) are also of major interest for EU investors as imports account for almost 100% of the over 18,000 tonnes of rare eraths used each year in the EU. In 2022, China accounted for the largest share of rare earth element imports with 40%, was second at 31% and Russia was in third place with 25%. In 2024 Lynas Rare Earths achieved significant milestones, including securing a variation to its Malaysian operating licence, allowing for continued cracking and leaching operations in Malaysia, and starting production at its new Kalgoorlie Rare Earths Processing Facility. The facility's construction and commissioning were completed in just over two years. Lynas reported revenue of $463.3 million and a Net Profit After Tax (NPAT) of $84.5 million for FY24. NdPr production decreased by 8% due to the major works program in Malaysia, The inclusion of nuclear energy in the EU taxonomy for sustainable activities is likely to boost uranium investment significantly. This, and global renewed interest in Uranium stocks, has likely contributed to strong trading from ASX uranium stocks such as Deep Yellow (DYL), Boss Energy (ASX: BOE) and Elevate Uranium (ASX: EL8). The EU taxonomy is a framework that guides investment towards environmentally sustainable activities. By classifying nuclear energy as a sustainable technology, the EU acknowledges its role in reducing carbon emissions and providing a stable energy source, complementing renewable energy. As a result of inclusion in the taxonomy, institutional investors and funds seeking to invest in sustainable energy projects are more likely to allocate capital to the nuclear sector. This, in turn, creates increased demand for uranium, the key fuel in nuclear reactors. We are seeing strong engagement for quality ASX and TSX listed Uranium stocks from EU investors. Biotech is back in 2024 with ASX company Clinuvel Pharmaceuticals (ASX: CUV) seeing solid volumes on Frankfurt and German trading exchanges. Clinuvel is a global speciality pharmaceutical group focused on developing and commercialising treatments for patients with a genetic, systemic, and life threatening acute disorders as well as healthcare solutions for specialised populations. We are optimistic about continued demand for quality dual-listed ASX stocks on German exchanges. An annual study by Deutsches Aktieninstitut as found that a total of 12.3 million German citizens save in stocks, stock funds and ETFs. That is over 17 percent of the population aged 14 and over - or just over one in six. Despite rising interest rates and persistent inflation, major geopolitical tensions and weak economic growth prospects, German investors largely remained loyal to stock investments. That is a good result according to the Deutsches Aktieninstut. The number of investors in funds and ETFs is around 10.3 million, which is the same as last year. Fund and ETF savings are the foundation of share saving. More than 80% percent of share portfolios contain funds or ETFs. The number of those who invest directly in shares, on the other hand, has decreased: only 4.7 million - 585,000 fewer than in 2022 - are invested in individual shares. This is about 5.5% of the population. This is somewhat in line with Australia where about 7% of population have between $5,001 and $10,000 invested in shares and 6% more than $100,000. An annual study by Deutsches Aktieninstitut as found that a total of 12.3 million German citizens save in stocks, stock funds and ETFs. That is 17.6 percent of the population aged 14 and over - or just over one in six. Compared to 2022, that represents a decrease of 570,000. Despite rising interest rates and persistent inflation, major geopolitical tensions and weak economic growth prospects, savers largely remained loyal to stock investments. That is a good result according to the Deutsches Aktieninstut. Funds and ETFs are an indispensable part of the share portfolio. Of the 12.3 million share savers, 7.6 million have only funds or ETFs in their portfolio. 2.0 million only invest in shares. 2.6 million savers combine both types of investment. The number of investors in funds and ETFs is around 10.3 million, which is the same as last year. Fund and ETF savings are the foundation of share saving. More than 80 percent of share portfolios contain funds or ETFs. The number of those who invest directly in shares, on the other hand, has decreased: only 4.7 million - 585,000 fewer than in 2022 - are invested in individual shares. Many savers remained loyal to stock investments. Loyalty to stocks - despite interest rate changes and turbulent times High inflation, as last seen in the 1970s, hit people with low incomes particularly hard and further limited their ability to save. Due to rising interest rates, fixed-interest investments again competed more strongly with stocks, funds and exchange-traded funds (ETFs) and, together with the record high of the DAX at the end of the year, provided incentives for profit-taking and reallocation in the portfolio. Overnight and fixed-term deposits celebrated a comeback. Against this background, the stable number of stock savers is a good result. The number of investors in equity funds and ETFs remained stable, while the number of shareholders fell in 2023. The analysis shows that it was more men who liquidated their stock investments. Women, on the other hand, were just as involved in the stock market in 2023 as they were in 2022. Older investors remained invested. Younger investors withdrew somewhat. In the long-term trend, however, the positive attitude towards stocks among younger people remains intact   We have compiled a list of the ASX Uranium stocks seeing the highest volume on Frankfurt Stock Exchange, Tradegate, Berlin and the other primary German trading exchanges. The top 5 Uranium traded stocks on German exchanges in August 2024 were: European investors are returning to the Uranium sector, driven by a combination of rising uranium prices, favourable changes in EU taxonomy laws for sustainable investment and sluggish outlook for the EU battery metals sector. The global spot price of uranium is up 30% in 12 months to US$68.25 a pound. Although, some uncertainties have entered the market from when the spot price hit a high of US$81.30 in January this year. BMO Markets analyst, Alexander Pearce, noted 2024 could see the first significant growth in uranium supply in years as older projects catch with demand, however permitting delays, logistical issues and political interference could create delays. In 2023 the EU accounted for approximately 23% of global uranium demand, which underscores European investor interest in the sector. A significant factor behind investor enthusiasm is the re-emergence of nuclear power as a key player in the global energy transition. Nuclear energy produces no direct carbon emissions, and many countries are increasingly viewing it as a reliable source of low-carbon electricity. France derives more than 70% of its electricity from nuclear energy and has stated it may need to build more than 14 new nuclear reactors – 6 more than currently planned - to meet the Country’s targets of reducing dependence on fossil fuels. Another major driver for uranium investment is the inclusion of nuclear energy under the European Union’s sustainable finance taxonomy. In 2022, the EU officially recognized nuclear power as a “green” investment, classifying it as sustainable for energy transition purposes. This policy change opens the door for significant institutional investment, as funds seeking to meet Environmental, Social, and Governance (ESG) criteria can now invest in uranium and nuclear energy without being excluded from green portfolios. As ESG-focused funds grow, this regulatory shift could result in a flow of capital into uranium markets, further boosting stock prices. Austlinx director, Matthew Reynolds, sees further demand for quality ASX Uranium and clean energy stocks from German and European investors.  Northvolt has recently announced significant changes to its production strategy, which will impact key sites. As part of the new strategy, cathode material production at the Northvolt Ett plant in Skellefteå, Sweden, will be stopped although plans for cell production at the facility will proceed as scheduled. In another move, the Northvolt Fem program in Borlänge, Sweden, which was intended to be a new production site for cathode materials, will also be discontinued. The Borlänge site, which was only acquired in 2022, is now set to be sold, marking a significant shift in the company's plans for its Swedish operations. Meanwhile, Northvolt's largest battery system factory in Europe, Northvolt Dwa in Gdansk, Poland, remains a critical part of the company’s strategy. However, the company is actively seeking partners or investors to help finance its operations at the Polish site, indicating potential challenges in maintaining self-sufficient operations. Adding to this, Volkswagen (VW), one of the largest car manufacturers in the world, recently revealed its decision to close a plant in Germany. The closure appears linked to decreased demand for combustion engine vehicles, ongoing cost pressures, and the global shift toward electric cars. These closures reflect mounting difficulties for European automakers as they navigate the transition to EVs, facing both technological challenges and stiff competition from foreign markets, particularly China. According to Bloomberg news, nearly a third of large auto plants in Europe made fewer than half the vehicles they have the capacity to make. Car sales are nearly a fifth below pre-pandemic levels, and demand for EVs is lower than expected. That's leaving factories half-empty and looming structural problems for Europe where the auto industry accounts for over 7% of the EU’s GDP and more than 13 million jobs. Meanwhile, Chinese automaker BYD (Build Your Dreams) is rapidly growing, selling over 3 million cars annually, compared to Tesla’s 1.8 million sales. BYD's success underscores China’s ascendance as the new epicentre of global car manufacturing, particularly in the EV sector. This increase is encouraged by strong government support, access to critical raw materials, and an extensive domestic supply chain that enables the production of affordable EVs at scale. Chinese carmakers are rapidly growing their global footprints, with BYD planning plants in Thailand and Hungary, among other countries. The company is also buying its German distributor Hedin Electric, as it moves to scale up in Europe. By 2030, Chinese carmakers could see their share of the global EV market double to a third, UBS has forecast, with European firms suffering the biggest loss of market share as a result. The shift toward China as the world’s leading car manufacturing hub has profound implications for the global supply chain, especially for companies in the critical raw materials sector. With Northvolt and VW signalling supply issues and a retraction of Europe’s manufacturing base, critical raw materials companies may see greater opportunities in Asia. However, the geopolitical risks and supply chain vulnerabilities remain significant. To thrive companies must navigate a rapidly shifting landscape, where China’s dominance in EV production is setting the pace for the global market. We continue to see strong investment in Europe in new battery technologies, substitution processing and materials and recycling technologies.  |
AuthorMatthew Reynolds. Archives
April 2025
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